Correlation Between Aba Chemicals and CSSC Offshore
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By analyzing existing cross correlation between Aba Chemicals Corp and CSSC Offshore Marine, you can compare the effects of market volatilities on Aba Chemicals and CSSC Offshore and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aba Chemicals with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and CSSC Offshore.
Diversification Opportunities for Aba Chemicals and CSSC Offshore
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and CSSC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and Aba Chemicals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aba Chemicals Corp are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and CSSC Offshore go up and down completely randomly.
Pair Corralation between Aba Chemicals and CSSC Offshore
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the CSSC Offshore. In addition to that, Aba Chemicals is 1.54 times more volatile than CSSC Offshore Marine. It trades about -0.29 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.07 per unit of volatility. If you would invest 2,448 in CSSC Offshore Marine on October 30, 2024 and sell it today you would lose (111.00) from holding CSSC Offshore Marine or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. CSSC Offshore Marine
Performance |
| Timeline |
| Aba Chemicals Corp |
| CSSC Offshore Marine |
Aba Chemicals and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and CSSC Offshore
The main advantage of trading using opposite Aba Chemicals and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, CSSC Offshore can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Shandong Gold Mining |
| CSSC Offshore vs. Bank of China | CSSC Offshore vs. Kweichow Moutai Co | CSSC Offshore vs. PetroChina Co Ltd | CSSC Offshore vs. Bank of Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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